Stock Split From Rs 5 To Rs 2 & Debt-Free Multibagger Stock: Company Acquires Equity Shares in Rishiraj Infravision Pvt Ltd
The stock gave multibagger returns of 1,955 per cent in 5 years.
Global Education Limited has recently made a strategic move by acquiring a significant stake in Rishiraj Infravision Private Limited. This acquisition, finalized on November 29, 2024, has elevated Rishiraj Infravision to the status of an associate company under Global Education Limited.
Rishiraj Infravision, a relatively new player in the commercial real estate sector, was incorporated in 2024. The company's primary focus lies in buying, selling, and developing real estate properties, including land, buildings, and residential complexes. While the company's financial performance for the past three years is not available due to its recent inception, the acquisition is anticipated to yield substantial synergies for Global Education Limited.
By integrating Rishiraj Infravision into its portfolio, Global Education Limited aims to expand its business operations and achieve significant growth. This strategic move positions the company to capitalize on opportunities within the real estate market and potentially diversify its revenue streams. As Rishiraj Infravision matures and establishes itself in the industry, it is expected to contribute positively to the overall performance of Global Education Limited.
Additionally, Global Education Ltd (GEL) proposes to subdivide its existing equity shares from a face value of Rs 5 to Rs 2 each. This will result in the creation of two new equity shares for every existing one. Concurrently, the company intends to amend its Memorandum of Association to reflect the altered share capital structure. The authorized share capital will remain at Rs 12 crore, but will now be divided into 5,97,50,000 equity shares of Rs 2 each and 5,00,000 redeemable preference shares of Re 1 each. The record date for the stock split is fixed as Tuesday, December 10, 2024.
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Global Education Ltd (GEL), established in 2011, is a comprehensive educational service provider and consultancy firm. Offering a wide range of services, GEL caters to various organizations, including educational institutions, corporations and banks. Their expertise spans business management consulting, skill development programs, and admission assistance. From infrastructural support and online examinations to marketing and branding, GEL provides a one-stop solution for educational needs. Additionally, they offer a variety of products, such as computer hardware, tools, and printed materials, primarily serving educational institutions. With a strong network and a clientele that includes industry giants like Capgemini, HCL and Wipro, GEL has established itself as a reliable and trusted partner in the education sector.
According to Quarterly Results, the total income increased by 68.6 per cent to Rs 25.66 crore and net profit increased by 50.9 per cent to Rs 10.65 crore in Q2FY25 over Q1FY25. In its half-yearly results, the total income increased by 6.5 per cent to Rs 40.88 crore and net profit decreased by 8.8 per cent to Rs 17.75 crore in H1FY25 over H1FY24
The company has a market cap of Rs 366 crore and is debt-free. The company has delivered good profit growth of 35.5 per cent CAGR over the last 5 years and has been maintaining a healthy dividend payout of 28 per cent. The company's shares have an ROE of 40 per cent and an ROCE of 55 per cent. The stock gave multibagger returns of 1,955 per cent in 5 years. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.